Nowadays, the stock market has seen an increase in companies using speculative tactics to manipulate facts, financial data, and even accounts. Ultimately, shareholders pay the price when the stock price starts declining after the discovery of these issues. Here are some simple warning signs to help you avoid trouble: 👉 *Sudden Increase in Investor Meetings* It's worth questioning the reason behind this sudden attention and increased analyst coverage of the stock. (e.g. Infibeam Avenues, Zomato) 👉 *Frequent Adjusted Earnings* When a company keeps calling losses or extra expenses "one-time" or "exceptional," it might be hiding its real financial health. (e.g. Zee Entertainment) 👉 *Lavish Spending on Luxuries* Unnecessary spending on luxury perks like private jets shows poor money management. (e.g. Kalyan Jewellers) 👉 *High Fees Paid to Auditors for Non-Audit Work* It raises questions about the company’s transparency. (e.g. Manpasand Beverages) 👉 *Overactive CEO on Social Media* It can lead to controversies and a lack of focus on running the company. (e.g. Paytm, Ola) 👉 *Frequent Resignations of Key People* It’s usually a sign of deeper internal issues. (e.g. Ola) 👉 *Unqualified People on the Board* Better safe than sorry!